The article will provide you an in-depth examination of the compliance, utilization of unspent funds, and impact of CSR programs at ELGi Equipments Limited, highlighting areas where the company can improve and areas where it excels in.
New Delhi: ELGi Equipments Limited, a Coimbatore-based company, has been actively engaged in Education and Community development projects in and around Coimbatore for a number of decades. The company’s CSR policy and programs are mainly directed towards education and promoting gender equality, women empowerment, environmental sustainability, protection of national heritage, music, drama, dance, sports, fine arts, helping widows, aged persons, physically and mentally challenged persons, and rural development projects.
The company was and continues to be one of the primary sponsors of the Coimbatore Marathon event.
While it is commendable that the company’s initiatives are in line with the eligible areas as listed under Schedule VII of the Companies Act, 2013, and that it has a CSR committee in place to formulate and recommend CSR policy and annual action plans, it is notable that the company has not carried out Impact assessment of CSR projects in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014.
It would be beneficial for the company to carry out impact assessments in order to measure the effectiveness of its CSR projects and make informed decisions on future investments.
The company reports that it had no unspent balance as of April 1, 2021. However, for the year ended March 31, 2022, the company has reported unspent amounts of Rs. 2,40,60,000 (approximately $32,764) (approximately INR 2.4 Crore) relating to ongoing CSR projects which were transferred to an “Unspent CSR Bank account” within 30 days of the end of the financial year. It is important for the company to ensure that these unspent funds are utilized effectively in the coming fiscal year, to maximize the impact of its CSR initiatives.
Total CSR obligation for the financial year 2020-21 was Rs. 2.37 Crore.
The Company supports a school with 1500 students in Vellalore, Coimbatore through a registered trust and has also contributed to the construction of a new school building through the trust. Additionally, the Company provides financial support to the Amrit Center for Special Needs and the Coimbatore Cancer Foundation.
In accordance with Section 135 of the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company has established a Corporate Social Responsibility Committee, consisting of Mr. Jairam Varadaraj, Mr. B. Vijayakumar, Dr. T Balaji Naidu, and Ms. Aruna Thangaraj.
Overall, it is commendable that ELGi Equipments Limited is actively engaged in various CSR initiatives and has a CSR committee in place to oversee these activities. However, it would be beneficial for the company to carry out impact assessments to measure the effectiveness of its initiatives and to ensure that unspent funds are utilized effectively in the future.
Table: CSR Spending by ELGi Equipments Limited
| Amount (in Rs) | |
|---|---|
| Total CSR amount spent for the Financial Year (2021-2022) | 11,50,000 |
| Total CSR Amount transferred to Unspent CSR Account as per Section 135(6) | 2,40,60,000 |
| Percentage of CSR spending against the net profit | 2% |
Note: The table shows the CSR spending by ELGi Equipments Limited for the financial year 2021-2022. It is important to mention that this table and data are based on the information provided by the company in their CSR report.
ELGi Equipments Limited is a global leader in providing sustainable compressed air solutions, with close to 62 years of experience in manufacturing air compressors. With a focus on designing customer centric solutions, ELGi has earned worldwide accolades for their extensive range of innovative and technologically advanced compressed air solutions that are suitable for a variety of industry applications.
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